Reply to People who bought a great house with low interest and

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]18 years ago I bought a starter home at 6% interest but it doubled in value when I sold it 10 years later. I used the proceeds to pay off all of our student loans and put a big down payment on another house in the suburbs. [b]I got a 2.875% interest rate for 15 years [u]and have been paying extra [/u]so I’m almost done with my mortgage. [/b]Somehow I’m a lowly federal employee sitting on a $1.8 million house in Chevy Chase nearly fully paid off. It feels great, and I’m sure no one knows when I take the metro downtown with my brown bag lunch like the average schmo. Lots of luck.[/quote]

It troubles me that our federal employees have so little financial sense.  [/quote]

NP. What are you referring to? That they could have kept the % for 15 (or even have gone for 30) and invested the extra payment money in the markets to make more?

If so, not everyone is comfortable investing in stocks and/or bonds. I think he/she has done great.[/quote]

I think PP was referring to the foolishness of paying extra on a 2.875% mortgage.[/quote]Some people want that piece of mind of not having a mortgage, being debt free.  Other folks see the opportunity to do better either in the stock market or in a CD paying a current rate of 5%.  But with inflation running at at least 2%+, I actually favor paying back over a longer period of times esp with my 3.25%  fixed rate mortgage.  Those payments in 10 years which are fixed will have much less purchasing power.  Your enemy is inflation,  and that is how the Federal govt is going to deal with their $32 Trillion in debt.   They will pay it back with "cheap" dollars.

Is it foolish to pay extra on a 3% mortgage?

At what percentage is it not foolish?[/quote][/quote]

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